New April law set to lower drug prices – but there’s another way to immediately keep your prescription prices low

SOME Americans could see lower prices on prescription drugs starting this month, thanks to a new law.

It comes as President Donald Trump aims to reduce some healthcare costs, but the effects likely won’t be immediate.

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Trump signed a multi-faceted executive order on April 15 that seeks to lower drug prices and cut costs for Medicare, per CNN.

Still, some healthcare costs are expected to remain high for some time, and the White House is still working with Congress on some provisions in the executive order.

In the meantime, there are still ways for Americans to save on prescriptions immediately through platforms like GoodRx.

GoodRx, SingleCare, RxSaver, and other websites and apps work to find consumers the best prices and coupons.

While GoodRx is free, it offers a premium service like some others for $9.99 a month or $19.99 a month for families, which can offer more perks and discounts.

More savings could also be on the way through the provisions in Trump’s executive order.

Some of those provisions include allowing states to more seamlessly import drugs from other countries.

Florida, for example, was permitted by the Biden administration to import select drugs from Canada in 2024.

Trump’s provisions also make it a requirement that federally qualified health centers distribute discounts to patients that they get for EpiPens or insulin.

The executive order is also changing a former Biden administration initiative that allowed Medicare to negotiate its drug prices.

It was first drafted in 2022 in the Democrats’ Inflation Reduction Act.

An estimated $6 billion is expected to be saved for the federal government by giving Medicare the ability to negotiate, with another $1.5 billion in costs for American seniors.

Biden officials previously noted that the first 10 drugs to see price reductions will be in early 2026, and that another 15, including GLP-1 drugs used for weight loss like Ozempic, would also see drops soon after.

Trump noted that the executive order this month seeks to “improve” on the savings offered from the Biden administration, per a White House fact sheet obtained by CNN.

Those improvements will come through Health and Human Services Secretary Robert F Kennedy Jr, who will improve the medication selection for price deductions, focusing on those typically higher-cost than others.

Kennedy is also supposed to work side-by-side with Congress to ensure that the periods for when each type of drug becomes eligible for price reductions are balanced.

If they aren’t balanced, according to the Trump administration, drug manufacturers can invest further into large molecule drugs, which cost more and aren’t up for negotiation until 13 years after approval from the Food and Drug Administration (FDA).

Small molecule drugs, which are typically cheaper and help treat more Americans, have a waiting period of nine years before prices can be negotiated.

KEEP IT NEUTRAL

Additionally, Health and Human Services (HHS) is working on an initiative under the executive order to standardize Medicare payments made for prescriptions.

That way, they’ll cost the same amount at the doctor’s office or in hospitals.

Some policymakers have referred to the move as “site-neutral” reform.

According to a statement from the White House, prices could drop by as much as 60% as a result.

CLOSER LOOK

With the executive order, Trump also demanded that regulators make certain changes so that hospitals don’t get heavy discounts on medicines that are allegedly not passed on to patients.

Hospitals have argued that those discounts are passed on through services for local communities.

Not to mention, pharmacy benefit managers (PBMs), who serve as negotiators between drug manufacturers, insurers, and pharmacies for costs, are under a watchful eye with the executive order.

PBMs have been accused of increasing drug prices in the past, and the Trump administration seeks more clarity on the fees PBMs charge and the compensation they get for their services.

TARIFF TROUBLE?

While the executive order is in place, some health experts have warned that Trump’s pharmaceutical tariffs negate the cost reductions that would be made.

Several major drugmakers rely on ingredients and manufacturing processes from countries like China and India, per CNBC.

“We are already in a state where prescription drugs are unaffordable to so many,” Mariana Socal, health policy professor at Johns Hopkins, told the outlet.

“Anything that we change, any trade policies, any tariff policies, anything that further increases the cost of prescription drugs, be it in the supply chain, the distribution network, risks increasing costs to the consumer even further and just worsening the affordability crisis for drugs in America that we’ve had for a long time.”

Experts like Socal argue that branded drugs will skyrocket under pharmaceutical tariffs, as manufacturers can easily pass the cost to consumers.

Generic drugs could also be removed altogether if international companies want to exit the US market.

CVS Health’s CEO also recently pledged to cut “egregious price hikes” on drugs after blasting a $21 million spike from pharmaceutical manufacturers.

Major drug stores like Walgreens are also conducting some store closures in 2025.